ChainThink reports that on March 13, user @kingfxyo, while exchanging approximately $50.43 million worth of aEthUSDT for AAVE via CoWSwap, ended up receiving only about 327 aEthAAVE, worth roughly $36,000, due to a slippage exceeding 99%. Community analysis suggests this swap was likely executed using AAVE’s collateral swap feature via its UI, converting aEthUSDT to aEthAAVE—representing the deposit of USDT and AAVE into the AAVE protocol. The issue primarily stems from poor routing strategies employed by most aggregators; CoWSwap does not appear to have misrepresented the price of aEthAAVE.
User Loses Over $50M in AAVE Trade Due to 99% Slippage
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Summary
On-chain data reveals a major slippage incident on March 13, during which user @kingfxyo lost over $50 million in an AAVE trade. The user attempted to swap $50.43 million in aEthUSDT for AAVE via CoWSwap but received only 327 aEthAAVE, worth approximately $36,000. Analysis indicates the loss resulted from poor routing strategies by aggregators, not price manipulation by CoWSwap. The transaction likely utilized AAVE’s native UI collateral swap function. This event underscores the risks inherent in DeFi trading and is a significant update in cryptocurrency price news.
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